Term
| What is the market value of all final goods and services produced within the borders of a nation in a year? |
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Definition
| GDP (Gross Domestic Product) |
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Term
| What is purposely excluded in calculating GDP? |
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Definition
| Intermediate goods and secondhand sales. |
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Term
| GDP can be calculated by? |
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Definition
| Adding consumer purchases of goods and services, gross investment spending by business, government purchases and net exports? |
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Term
| What is the formula for GDP? |
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Definition
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Term
| What measures each year's output valued in terms of the prices prevailing in that year? |
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Definition
| Nominal (current-dollar) GDP |
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Term
| What measures each year's output in terms of the prices that prevailed in a selected base year? |
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Definition
| Real (constant dollar) GDP |
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Term
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Definition
| Either, an increase in real GDP over time or an increase in real GDP per capita over time. |
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Term
| The quantity and quality of a nations natural resources, the quantity and quality of its human resources, its stock of capital facilities, and its technology make up what? |
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Definition
| The supply factors in economic growth. |
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Term
| What is shown graphically as an outward shift of a nations production possibilities curve? |
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Definition
| The growth of production capacity |
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Term
| What is the primary reason GDP has grown? |
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Definition
| Increases in the productivity of labor. |
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Term
| What is the partial reason GDP has grown? |
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Definition
| Increased inputs of labor. |
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Term
| The productivity speed up is based on...? |
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Definition
| Rapid technological change in form of the microchip and information technology, increasing returns and lower per unit costs and heightened global competition and holds down prices. |
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Term
| The main sources of increasing returns in recent year are...? |
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Definition
| The use of more specialized inputs as firms grown, the spreading of development costs, simultaneous consumption by consumers, and network effects and learning by doing. |
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Term
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Definition
| The expansion and application of human knowledge, which is limited only by human imagination. |
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